WEDNESDAY, MAY 10, 1989

BUT HE SAID THAT, WITHOUT GOING INTO ALL THE PROS AND

WOULD. HOWEVER, ASK MEMBERS

A SALES TAX OR A WHOLESALE TAX, HE

CONSIDER CAREFULLY THE EFFECT ON THE LESS WELL TO DO COMMUNITY OF OUR PRESENT NARROWLY BASED TAX SYSTEM.

CONS

OF

ΤΟ

MEMBERS OF

THE

BROADENING OF THE ΤΟ RATIONALISE OR BRING DOWN

THE FINANCIAL SECRETARY POINTED OUT THAT A INDIRECT TAX SYSTEM WOULD ENABLE HIM OTHER TAXES.

HONG KONG "THE REST OF THE WORLD IS MOVING IN THIS DIRECTION.

IT GAINS FROM HAVING LOW MUST NOT LOSE THE COMPETITIVE EDGE THAT DIRECT TAXES," HE SAID.

"IF WE LOSE THAT EDGE, IT IS LIKELY THAT INVESTORS ELSEWHERE, AND ULTIMATELY THIS COULD HIT OUR LABOUR FORCE.

WOULD LOOK

"WOULD I REALLY BE PERFORMING SUCH A SERVICE FOR THE LESS TO DO MEMBERS OF THE COMMUNITY IF I WERE TO ALLOW THIS TO HAPPEN?"

THESE WERE THE THINGS THAT THE GOVERNMENT HAD IN PUTTING TOGETHER ITS PROPOSALS, HE SAID.

WELL

TO THINK ABOUT

ΤΟ

"IN DUE COURSE, SHOULD WE DECIDE TO BRING FORWARD

OPPORTUNITY TAX, THERE WILL BE PROPOSALS.

AMPLE

"INDEED, I REGARD

FOR

MEMBERS

IT

AS ESSENTIAL AND

A WHOLESALE EXAMINE

OUR

PROPER THAT

PUBLIC

"

HE SAID.

DISCUSSION ON THIS ISSUE SHOULD TAKE PLACE IN THIS COUNCIL,

PROPOSALS, TURNING TO MEMBERS' COMMENTS ON HIS 1989-90 REVENUE

FORMULATED HAVING REGARD TO THE MR JACOBS SAID HIS PROPOSALS WERE

TO AVOID ADDING AND SPECIFICALLY OVERALL ECONOMIC INFLATIONARY PRESSURES. DESPITE A LARGE FORECAST SURPLUS.

SITUATION

"BUT WHAT I HAVE SOUGHT TO ACHIEVE IS A

STRIKES A THAT

AND ONE INFLATIONARY, REQUIREMENTS AND LOWERING THE TAX BURDEN.

то

PACKAGE THAT IS NOT

BETWEEN

REVENUE

BALANCE

"HAD I PROPOSED TAXATION MEASURES WHICH FUELLED INFLATION, SECTORS OF OUR COMMUNITY WOULD HAVE BEEN ADVERSELY AFFECTED,

COMMENTING ON THE SUGGESTION BY

PAYMENTS.

ALL

H

HE SAID.

RELIEF BE BE WOULD

WOULD

MEMBERS THAT TAX MR JACOBS SAID IT PROVIDED FOR HOME PURCHASE EXPENSIVE IN TERMS OF REVENUE LOST AND, PERHAPS MORE IMPORTANT, RESULT IN AN INAPPROPRIATE STIMULUS TO DEMAND.

PERSONAL

ON A CALL FOR ABOLITION OF THE CLAWBACK ON ADDITIONAL

CONCEPT OF THE CLAWBACK TAXATION ALLOWANCES, HE EXPLAINED THAT THE WAS BASED ON THE ABILITY TO PAY.

ENTITLEMENT TO ADDITIONAL

NOT

"THROUGH ITS OPERATION, A PERSON'S PERSONAL ALLOWANCES DIMINISHES AS HIS INCOME INCREASES. THIS DOES SEEM TO ME TO BE INEQUITABLE."

/HE SAID ...........

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